14 August 2011
Early Prepayment of Your Joint Home Loan Issues
Couples, siblings and friends all wish to take the benefit of clubbing their income and going in for a joint home loan. This comes to an advantage as they both save on taxes and also this gives a support to them for the repayment tenure.
The best combination amongst joint home loans and the most approved joint home loans are among spouses. Since they both are staying in this flat and the title also is in mutual benefit. Even siblings can work towards purchasing a property together and when both are working they will get to purchase a home sooner than if they apply single handedly for a purchase. issues may come up during the loan repayment tenure of the joint home loan. The time of 10, 15 or 20 years is a long time and in between there may be many ups and downs. All this may affect your home loan and it is better to think about the unforeseen incidents and plan accordingly in advance.
When the couple get unexpected rise in salary or even one of them gets an extraordinary offer ad immediately their salaries shoot up then they will definitely wish to come out of their joint home loan at the first instance possible. For this the bank will charge them prepayment fees and then the flat will be clear of the loan as ownership of both. In case one of the spouses wishes to continue repaying of the loan alone, this usually happens in case of rise of one spouse and when the couple wish to go in for another loan, say for a car loan, travel loan etc. they can also club amounts of EMI and prepay the home loan. Repaying in large sums will help to reduce the interest amount for future EMIs and also reduce the repayment tenure of the joint home loan
In case of death or divorce both the spouses having a joint home loan will have to renew the document if they wish to continue singly. In most cases they do not wish to continue considering it as bad omen and it is left to the bank to close this deal. This leads to sever losses financially as bank will charge heavily for closure of the loan. If you can get a new owner who wishes to take over the ownership and home loan, all the better, as you will save some of the money going in for all bank closure procedures. Usually the parents or relatives of any spouse may opt for helping out here. Title ship issues also come up in case of closure of a joint loan. This can be mutually settled among both sides.
Prepayment charges of every bank are fixed at certain slabs and you can get the correct picture from their representatives of the lending institution. So, wishing a happy loan repayment, and fast progress towards purchase of a dream home to all joint home loan applicants.